Risk aversion in share auctions: Estimating import rents from TRQs in Switzerland

This paper analyzes risk aversion in discriminatory share auctions. I generalize the k ‐step auction model of Kastl (2011, 2012) and establish that marginal profits are set‐identified for any given coefficient constant absolute aversion. also derive necessary conditions best‐response behavior, which allows determining preferences from bidding data. Further, show how bidders' optimality allow computing bounds on tighter than those currently available. use my results to estimate import rents Swiss tariff‐rate quotas high‐quality beef. Rents overestimated when ignoring aversion, rent extraction is underestimated. Small bidders (small, privately owned butcheries) more averse large (general retailers). Best response violations few uniform across bidder sizes.